Interactive Data, a provider of financial market data, analytics and related services, has announced that it intends to acquire the majority of NTT Data Financial from NTT Data for JPY1
Interactive Data, a provider of financial market data, analytics and related services, has announced that it intends to acquire the majority of NTT Data Financial from NTT Data for JPY1.9bn (USD20.2m) in cash.
The transaction is expected to be completed by the end of 2008, contingent upon customary closing conditions.
NTT Data Financial, which is based in Tokyo, is a provider of securities pricing, reference data and related services to most of the major financial institutions in Japan.
Interactive Data and NTT Data Financial have been partners in a re-distribution relationship in Japan for more than 14 years, providing financial institutions with global end-of-day securities pricing, evaluations and reference data for clients’ mission-critical investment operations, including portfolio valuation and accounting.
This acquisition advances Interactive Data’s strategy of expanding its business in the Asia-Pacific region.
The companies say that by combining NTT Data Financial’s knowledge of the Japanese market with Interactive Data’s experience in delivering information for millions of global securities every day, Interactive Data will be able to directly provide financial institutions in Japan with a broader range of financial data and services.
Such services include fixed income analytics, valuations of complex financial instruments and indicative valuations of exchange-traded funds and other related structures.
After the transaction is closed, Interactive Data plans to change the name of NTT Data Financial to Interactive Data Japan while retaining the personnel and operating the business in a manner consistent with current practices.
Stuart Clark, president and chief executive officer of Interactive Data, says: ‘It is important for Interactive Data to have a strong and direct presence in the world’s second-largest economy. We have enjoyed a successful and long-standing relationship with NTT Data Financial in Japan over the past 14 years, and share a common approach to building long-term, trusting relationships with our clients. We believe that acquiring NTT Data Financial will enable Interactive Data to accelerate its growth in Japan and make progress toward our objective of being the first choice for financial market data and related services in that marketplace.’
At the initial closing, Interactive Data will acquire 64 per cent of NTT Data Financial, while NTT Data will retain a ten per cent interest.
Interactive Data plans to acquire the remaining equity of NTT Data Financial over the coming years.
The purchase price to acquire 100% of the company will be JPY3bn (or approximately USD31.6m assuming constant foreign exchange rates) in cash.
